OWWA Loan – What You Need to Know

A Glimpse of What You Need to Know about OWWA Loan

The Overseas Workers Welfare Association or OWWA is a membership institution that conducts programs and offers services for overseas Filipino workers or OFW. Among the services the institution offers is applying for a loan facility. This gives you an opportunity to start a new life sans the burden imposed by commercial financial institutions.

If you plan to avail of OWWA loan, here’s what you need to know about this facility before applying for one:

Quick Facts about OWWA loan

Basis of OWWA Loan Program

The OWWA loan is in accordance to the P2-billion reintegration program of the government to help OFWs not only find but also build sustainable businesses to support them and their families. This way, they won’t have to go back abroad to make a living and generate sustainable income for the family.

Proposed business must be in line with any of the following:

Health care

Agri-business

Tourism

Franchising

Education

Construction or rental business

Transport service

Service or trading

Likewise, the purpose of the loan must be for working capital and fixed asset acquisition only and not for personal use.

The OWWA Loan Program

OWWA allows every overseas worker P100,000.00 to P2,000,000.00 for individual borrowers and up to P5,000,000.00 for group borrowers. You have an option to avail of short-term loan, which lasts for 12 months, or long-term loans shall not exceed seven years. For long-term loans, a two-year maximum grace period is included on the principal.

Interest rate for both short- and long-term loans is pegged at 7.5% per annum.

Basic Requirements

Only OFW applicants certified and endorsed by OWWA can avail of the loan program, which will be coursed through by Land Bank. To be certified, the applicant must comply with the basic requirements:

Overseas worker applying for the OWWA loan facility must provide a certification from OWWA to prove his/her status as bona fide OFW.

The applicant must attend and finish the Enterprise Development Training.

Submit proposed business together with purchase order and service contract or contract growing agreement.

Applicant must likewise present copies of, but not limited to the following:

Bio-data of the applicant

Certificate of Registration with DTI

Mayor’s permit where the business is located

Income tax return or ITR for at least three years

BIR-filed financial statements for at least three years, if applicable

Statement of assets and liabilities

Interim financial statements, if available

Loan security or collateral, which could be the object of financing or mortgageable assets like project assets or other assets of the borrowers

Where to Submit

Once you have the necessary documents, submit the requirements in OWWA Main Office located at F.B. Harrison St., Pasay, Metro Manila. You can also submit the requirements in the nearest regional office near your area. OWWA regional offices are located in various cities in Luzon, Visayas, and Mindanao.

Loan evaluation, processing, and approval will be completed within 45 days from submission of complete requirements.

Hello Jushel. Business permit is among the requirements when applying for a loan because OWWA and Landbank need to see that you are running a legitimate business. This is a mandatory requirement. Regarding sa business, it’s up to you po kung ano ang gusto ninyong simulan as long as the business is allowed by OWWA. You can attend the Enterprise Development Training to help you decide kung anong klaseng business ang mas babagay sainyo and what to expect kapag nagne-negosyo. Thanks!

Hi Joey! Unfortunately, hindi po iyon pwede dahil ikaw ang magiging principal borrower and not your parents. What you can do po is you can use other forms of assets under your name like time deposit or savings account as collateral 🙂

Hi Rome. It’s good to know about your intention to open your own business. For the collateral, you can submit a copy of the Deed of Sale as proof na nabenta na sayo ang lupa and perhaps, execute an affidavit stating na processing na ang pag-transfer sa iyong pangalan. Hopefully, OWWA will allow this 🙂

Hello Larry! We think this is a legitimate business plan, but we are not sure if OWWA will accept this. This is why importante din po mag-attend ng Enterprise Development Training to help you determine the viability of your chosen business 🙂 OWWA will also help you and give you insights kung paano pa kikita ang iyong proposed business. Thanks!

Hello Sheila! The seminar po depends on the Regional Office and we don’t know when the schedule will be. We suggest po that you coordinate directly with the OWWA Regional Office near you for the schedule since they are more capable of addressing this concern. Please check this link po for contact details – http://www.owwa.gov.ph/?q=content/contact-us

Hello Edna. We understand your sentiments. Unfortunately, this is OWWA policy and we are merely relaying the information given by them. If you’re wondering if may nakaka-avail ng OWWA Loan, yes, there are OFWs who were granted this type of loan facility.